1. Security Applications manufactures home- and business-related physical security systems designed to protect property while the owners are away or asleep. It is owned byArnold,

1. Security Applications manufactures home- and business-related physical security systems designed to protect property while the owners are away or asleep. It is owned byArnold, and the day-to-day management is left to Bob, who has been an employee of the company since it started 30 years ago. Bob has always performed well and has an excellent track record with the company. He and Arnold do not have any type of employment contract – they’ve just worked together for the last 30 years. One day,Arnold comes to Bob and explains thatArnold’s son, Junior, is now graduated from college, and it’s always beenArnold’s dream that Junior take over the company. Bob understands, and says that he’ll be happy to take a back seat to Junior and teach him the ropes as a lower-level manager.Arnold winces, and says that the only way for Junior to truly be in charge is for the former boss not to be around, so this will have to be Bob’s last day. Shocked, Bob reiterates that he’ll be glad to take a lower-level job, and even will say that he asked for it so that people won’t come to him for things.Arnold says, “No – it’s been great, Bob, but now it is time you go.” Which of the following is most correct?

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